Two Detroit pension fund officials indicted

DETROIT Wed Mar 20, 2013 6:34pm EDT

DETROIT (Reuters) - Two former Detroit city officials were indicted on corruption charges on Wednesday, a week after ex-Mayor Kwame Kilpatrick was convicted for similar offenses and days before a state-appointed emergency manager takes over the city's finances.

A grand jury accused former city pension officials Ronald Zajac and Paul Stewart of a bribery and kickback scheme that the U.S. Attorney's office said involved more than $200 million in Detroit pension fund investments.

Stewart is a former trustee of the retirement system for the city's police and firefighters. Zajac worked for two of the city's other retiree pension funds.

Four people have now been indicted in the suspected pension scheme, the U.S. Attorney's office said. The others were investment sponsor Roy Dixon and former treasurer Jeffrey Beasley, a fraternity brother of Kilpatrick's.

Kilpatrick was convicted on two dozen federal charges of corruption and bribery in a separate case and is in prison awaiting sentencing.

"Since taking office in 2009, restoring trust and integrity to city government has been a top priority and of utmost importance to me personally," Mayor Dave Bing said in an emailed statement. "Detroiters deserve to be represented by those who adhere to the highest ethical standards, and when the public trust is betrayed, justice must prevail."

(Reporting by Steve Neavling; Editing by Daniel Trotta and Leslie Adler)

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Comments (2)
eatingdogfood wrote:
If The Democrats Didn’t Give ” Sweetheart Deals ” To Your Public Service Union.
Goon Employees To Get Reelected; You Would Have Plenty Of Money and The.
Taxpayer would have Some Spare Change in His Pockets! Democratic Hustler
Politicians + Corrupt Union Goons = BANKRUPTCY BABY! Time To Bring.
RICO Conspiracy Charges Against The Hustler Corrupt Democrats and the.
Criminal Unions!

Mar 22, 2013 8:43pm EDT  --  Report as abuse
eatingdogfood wrote:
Isn’t It Time For The Abused Taxpayers Of Detroit To Leave In Masses.
In Order To End This Unholy Conspiracy Between The Totally Corrupt.
Democrats And The Equally Corrupt Public Service Unions? It Is Really.
The Only Way To Finally End This Criminal Activity! Did Anybody Ever.
Hear Of RICO?

Mar 22, 2013 9:12pm EDT  --  Report as abuse
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